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Can you summarize NHRS Chapter 396?
BANKS AND BANKING; LOAN ASSOCIATIONS; CREDIT UNIONS (Chapters 383 - 397-B) > REGULATION, CONSERVATION, AND REORGANIZATION UNDER DIRECTION OF THE BANK COMMISSIONER
Short Summary
These legal documents govern the regulation, conservation, and reorganization of banks, loan associations, and credit unions under the supervision of the bank commissioner in New Hampshire. The bank commissioner has the authority to regulate various aspects of these institutions, including deposits, investments, borrowing, valuation of assets, collection and payment of accounts, employment, retirement of shares, and other business activities. The commissioner can issue written orders to enforce these regulations, which can be changed, canceled, or terminated as necessary for the protection of depositors and other creditors. The regulations apply to institutions under the supervision of the bank commissioner and are filed in the commissioner’s office. Notice of any order of the commissioner shall be served on the treasurer or cashier or other person in charge of the business of the institution affected and on one other officer or a trustee or director thereof. Any order relating to the withdrawal, payment, or reception of deposits shall also be posted in the institution for its depositors. The commissioner may give further notice of any order as deemed desirable. Violation of any order by an institution or its officers, trustees, directors, or employees having notice or knowledge of the order is unlawful. No right of action by or for any party in interest shall lie for the recovery of any money or property in excess of that which may be paid or delivered by the institution under any order. The assets of an institution under regulation as to payment of money are not subject to attachment or trustee process against it as a principal defendant. The commissioner may appoint a conservator for an institution to conserve its assets and manage its business if necessary. The conservator is granted powers to carry out the provisions of the chapter and is subject to the duties imposed by the chapter and regulations issued by the commissioner. The appointment of a conservator does not affect any existing regulations or the commissioner’s authority to make further regulations. The compensation and expenses of the conservator and their assistants, as well as other expenses of the institution, are paid from its assets upon the order of the commissioner. The officers, trustees, directors, and stockholders are not liable for any acts or results of the conservatorship. The commissioner may remove a conservator at pleasure and terminate the appointment when the interest of depositors and other creditors no longer requires conservatorship. The commissioner also has the authority to reorganize financial institutions under his supervision. A majority of the stock or shareholders of such institutions may submit a written plan for reorganization to the commissioner, which, upon approval, becomes effective. The reorganization plan includes the issuance of non-interest bearing certificates to depositors, which represent the deficit charged to their accounts. The issuing institution can redeem these certificates after retiring preferred stock or shares, subject to approval by the commissioner. The documents also govern the issuance of additional stock or shares by institutions under the supervision of the commissioner, allowing them to issue additional stock or shares with majority vote and commissioner approval. The documents also authorize institutions to exercise powers and avail themselves of the benefits of any act of Congress granting powers to such institutions. The documents do not limit any other power conferred by law upon the bank commissioner.
Whom does it apply to?
Banks, loan associations, credit unions, bank commissioner, treasurer, cashier, officers, trustees, directors, creditors
What does it govern?
Regulation, conservation, and reorganization of banks, loan associations, and credit unions under the supervision of the bank commissioner
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Hampshire